Ten Important Points to Include in an Employment Contract

An employment contract is an important document that outlines the terms and conditions of employment between an employer and an employee. It is important to have an employment contract in place so that both parties understand their rights and responsibilities, and to avoid any misunderstandings or disputes down the road.

1. Job title and description.

The job title and description should be set out in the contract. This will help to ensure that both the employer and the employee are clear about the role and responsibilities involved.

2. Hours of work.

The hours of work should be specified in the contract, including whether the employee is required to work overtime and whether they are entitled to a break.

3. Salary and benefits.

The salary and benefits should be set out in the contract, including details of any commission or bonus scheme. The contract should also state whether the employee is entitled to holiday pay, sick pay, and maternity/paternity leave.

4. Probationary period.

The probationary period should be specified in the contract, along with the grounds for dismissal during the probationary period.

5. Notice period.

The notice period should be set out in the contract, including the amount of notice that the employer must give and the amount of notice that the employee must give.

6. Severance pay.

If the employee is made redundant, they may be entitled to severance pay. The contract should set out how much severance pay the employee is entitled to.

7. Restrictive covenants.

The contract should include a clause setting out any restrictive covenants that the employee is required to adhere to. This could include a ban on working for a competitor or setting up a competing business.

8. Termination.

The contract should state the grounds for termination and the procedures that must be followed. It should also state whether the employee is entitled to any severance pay or other benefits on termination.

9. Post-employment obligations.

The contract should state the post-employment obligations of the employee, such as confidentiality and non-competition agreements.

10. Dispute resolution.

The contract should specify how any disputes between the employer and employee will be resolved. This could include arbitration or mediation.